What Hurts a Home Appraisal? 7 Components To Avoid

Who Pays Home Appraisal Cost?

The home buyer pays the home appraisal cost in a purchase-and-sale transaction. However, the buyer may ask the seller to bear these expenses as a part of the seller’s closing costs.

In a refinance transaction, the home owner pays the appraisal fees.

What Hurts a Home Appraisal?

There are multiple factors that adversely affect a home appraisal. We have listed a few of the reasons below:

Location of the Property

If the property is located in a noisy neighborhood or too close to the supermarket, then the buyers may find the property undesirable. This may cause the appraiser to give the house lower points for location.

Poor Curb Appeal

If the interiors of the house are well-maintained, but the exterior lacks curb appeal, then it may affect the appraisal score.

Overly Customized Homes

A home that is overly customized as per the current home owner’s tastes will make it difficult for the appraiser to valuate the property accurately. Additionally, home buyers may not be interested in a property that that is extremely tailor-made as per someone else’s preferences.

Yesteryear Features

If the house has installations that are from another era, then the home appraisal report will mention the absence of contemporary fixtures.

Outdated Floor Plan

The floor plans of houses built in the early 30’s or 40’s don’t offer a lot of privacy. This may be a considered a negative point as such properties wouldn’t interest modern home buyers.

Age of the House

Houses that are old may not fetch a competitive price, especially if they are not well-maintained. This may hurt the house’s valuation report.

Structural Damage or Foundation Issues

If the appraiser finds the house to be structurally unsound, it could drop the valuation of the house. It may even be cause enough to cancel the transaction altogether. Foundation issues will also have a similar impact on the appraisal.

How Does a Low Appraisal Affect the Home Seller?

A home seller may be affected by a low appraisal as they may not get the asking price of their house. Additionally, they may have to incur various expenses to carry out the repairs and renovations recommended by the appraiser.

» Also Read: Refinance Appraisal Checklist – Preparing Your House For Appraisal

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